Health Insurance Blog

Bobby Caina Calvan from the Sacramento Bee reports that the state of California has settled with Anthem Blue Cross regarding its cancellation of individual health insurance policies. The settlement requires that the insurer reinstate coverage for those whose policies were unfairly rescinded between 2004 and 2008, regardless of any medical conditions they may have. Qualified consumers will be contacted over the next three months via phone. In addition, Anthem Blue Cross must reimburse $14 million worth of out-of-pocket health expenses paid by these consumers.

The California health insurance company also has to pay a $1 million fine to the Insurance Department, with an extra $2 million tacked on if they fail to change their policies, Bobby says.

Blue Cross and Blue Shield of North Dakota (BCBSND) has come to an agreement with local hospitals that they will not lower reimbursement payments, reports Retha Colclasure of KFYR Bismarck. In order to save money, the insurer had sought to reduce payments to health care providers without contract renegotiations. The North Dakota Insurance Department blocked such a move.

Decreased payments from insurance companies make hospitals tighten their budgets, possibly resulting in fewer services being offered. For example, St. Alexius hospital would have suffered a $300,000 monthly deficit, Retha claims. Sometimes, hospitals may even refuse to treat patients under certain insurers because of what they consider inadequate compensation. Thankfully, North Dakota health insurance customers will no longer have to worry about that.